Vietnam’s benchmark VN Index was up 0.97 per cent at the break on Thursday, led by some banks that rebounded from strong falls in the previous session.
Hanoi-based Vietcombank, Vietnam’s top lender by market value, jumped 4.53 per cent, having lost a combined 11.5 per cent in the previous five sessions, while VietinBank bounced back 4.32 per cent.
Trade has been subdued this week as investors stayed on the sidelines to observe the effect of a central bank directive, which caps banks’ loans for investments in shares at 5 per cent of a bank’s registered capital, to inflows into the market.
“The fundamentals of the market are still positive, and many investors are just looking for the right time to step in,’’ said manager Nguyen The Minh of Viet Capital Securities.
Analysts said investors also reduced risk exposure ahead of Tet, the country’s biggest festival to mark the Lunar New Year, during February 16-23 this year.